Which of the following statements about chartered banks is false?
A) A chartered bank is privately owned.
B) A chartered bank is profit-seeking.
C) Chartered banks are the main source of short-term loans for businesses.
D) A chartered bank is required to use funds obtained from savers to purchase portfolios of government bonds.
E) A chartered bank serves individuals, non-business organizations, and businesses as a financial intermediary.

Question

Quizplus · Accepted Answer

Chartered banks are not required to use funds obtained from savers to purchase portfolios of government bonds. They are free to invest in a variety of assets, including government bonds, but are not obligated to do so.

Which of the Following Statements About Chartered Banks Is False